Having clear objectives is critical for any successful influencer marketing campaign. Once you set your objectives, you can develop your key performance indicators, or KPIs. These are measurable values that illustrate how well a company is achieving its established objectives. KPIs can really be anything, and they vary depending on your objectives. So, for example, if your objective is to boost brand engagement on social media, you may want to measure comments and likes as KPIs.
Before you put your campaign’s wheels in motion, it’s important to analyze the estimated impact against the investment to check if the campaign is viable and worth your effort.
1.3. Estimating your campaign's impact
Measuring your investment
To start, calculate the total investment that the company plans to put into the campaign. Make sure you consider:
Target influencers - How many influencers will you work with?
Economic fee per influencer - How much will you pay each, in money?
Product cost per influencer - For this investment, there are a few things you have to consider. First, what is the market value of your product? Next, what is the cost of goods sold (COGS) of your product? COGS means, basically, the production cost of your product. This is important to know because while the influencer will only know the market value of your product, your investment is based on the COGS.
For example: Your brand makes sneakers, which sell for $100 per pair in stores. For your campaign, you send a pair to each influencer. But, it only costs $50 in materials and labor for your company to make the sneakers. So really, you’ll be investing $50 in product for each influencer, not $100.
Incentive per influencer - What’s the total incentive you’ll provide to each influencer? Here you want to add up the economic fee + product cost per influencer. But remember! The perceived value per influencer will be higher than the total incentive you invest. Why? Because of COGS, of course! While your investment is based on the cost of production, the influencers will only know the market value.
Let’s go back to the example of the sneaker company above. In addition to gifting each influencer a pair of their sneakers, the company plans to pay each $100 in fee. So, the perceived value of incentive for the influencer will be $200 ($100 in cash and $100 in sneakers). But, for the brand, the total investment will be $150 ($100 in cash and $50 in COGS on the shoes). Simple, right?
Delivery - How much will any shipping and handling cost you?
Agency fee - If an agency is managing your campaign, what are they charging you?
Estimated total investment - After taking into account all the other factors, what’s the total estimated investment of the campaign? Make sure to consider the total incentive for all the influencers you’re planning to work with.
Measuring your estimated results
Next, it’s time to estimate the results of your campaign. Depending on the KPIs you selected. Some of the things commonly measured in influencer marketing campaigns are:
Followers - How many followers do the campaign’s influencers have?
Publication weight - What’s the difference between, for example, a story or a post? On Instagram, posts are worth more than stories, as they’re more likely to be displayed without any action from the user. For example, a story might reach 20% of an influencer’s audience, and a post might reach half.
Impressions - Impressions are all the times your campaign content is displayed, whether it’s clicked/liked/commented on or not. You can estimate the impressions of a campaign by combining the previous two factors. For example, if an influencer has 10,000 followers and they’ve agreed to upload 1 post and 1 story for your campaign, you can estimate that the story will get around 2,000 impressions, and the story around 5,000. The total estimated impressions would therefore be 7,000.If the collaboration is for product only, and the product doesn’t have a very high value, you may not have to estimate impressions at this point. But if there’s any cash incentive involved, it will be a necessary part of your evaluation.
Interactions - Interactions are when users, well, interact with your campaign content in some way. On Instagram, interactions are measured in comments and likes. Remember that stories don’t allow comments and likes; while you can react to a story, that reaction functions more like a DM than a public like or comment.
Clicks - This one is simple: how many times did people click the links in your campaign materials?
Cost per mille (CPM) - Cost per mille uses the Latin word for one thousand. So, CPM is, in modern terms, the cost per 1,000 impressions. Take the cost of your paid advertising, divide it by 1,000, and you’re left with the CPM. In influencer marketing, CPM is usually around $4-10. The lower the CPM, the better, as you're getting more advertising for less money.
Cost per interactions (CPI) - Take the total cost of your advertising and divide it by the total interactions. This shows you the price for each interaction provoked by the campaign.
Cost per click (CPC) - What you pay for each click generated by the campaign. It’s the cost of paid advertising divided by the number of clicks.
These values represented above aren’t exact, definitive standards; rather, they’re based on our experiences with influencer marketing campaigns.
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